Roosevelt and the New Deal

The New Deal is what brought the United States out of the Great Depression. In the 'first hundred days' after Roosevelt took office, he enacted many reform and recovery measures as part of the New Deal. He meant for the New Deal, "to deliver relief to the unemployed and those in danger of losing farms and homes, recovery to agriculture and business, and reform..." (1). In essence, the New Deal was expanded government. One of the many reform and recovery measures was to stimulate the economy by creating jobs. Roosevelt created several different organizations devoted to forming jobs which would in turn help the economy by putting money in the hands of the consumer and affecting supply and demand. The more money people have, the more they will spend. Roosevelt was able to lower unemployment to 17.2% by the end of the 1930's (2). His other reform and recovery measures were to help to reopen viable banks and regulate banking, legalize and tax beer and wine, decrease crop surpluses by subsidizing farmers who voluntarily cut back on production, build dams and power plants in the Tennessee Valley in order to generate and sell the power produced, and to stiffen government regulation of the securities business. The New Deal also brought the ocial Security Act that we still have in place today. Opponents of the new Deal were the rich, the conservative and numerous businessmen who didn't like that with all the reform and recovery measures Roosevelt was spending and raising the federal deficit.

References:

1. http://www.u-s-history.com/pages/h1851.html
2. http://www.studyworld.com/Franklin_D_Roosevelt's_New_Deal.htm

Introduction to the Great Depression

The Great Depression

The 1920s in America seemed like an age of endless prosperity. Construction boomed, business flourished, and the stock market soared. American hopes were high until the stock market crash of October 29, 1929. The crash sent shockwaves throughout the economy. After banks failed and businesses closed, millions of people found themselves out of work. The Great Depression had begun.

All levels of American society were affected by the Great Depression of the 1930s. The Great Depression had devastating effects that were felt around the world. Many Americans experienced poverty for the first time. Cities dependent upon heavy industry were hit hard because construction was halted in many countries. Farming and rural areas suffered as crop prices fell and with poor demand, cash croppers, miners and loggers suffered the most. Unemployment in the United Stated rose to 25%. Obtaining health care was directly related to income and with up to 25% of the population unemployed, health care was relatively unattainable for the poor.

In the 1930s the rate of suicide rose significantly. Charities were so overwhelmed that they could no longer provide even minimum assistance for all those in need. The new deal provided some relief but did not end the depression. President Franklin D. Roosevelt backed the idea of federal aid for poor children and other dependent Americans. In 1935 the national welfare system was established. FDR’s attempt at health care reform in 1933 was met with strong opposition from AMA. Although this was a time of great sorrow, inventions of baby food, nylon, and reflectors were just a few highlights of the 1930’s.

Some countries started to recover by the mid-1930s, but in many countries the negative effects of the Great Depression lasted until the start of World War II.

The Great Depression Project

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